Amazon could be the next YRF: Is the e-commerce major creating a blueprint for a film studio?

Industry sources say Amazon has hired consultants with expertise in content, film distribution, and exhibition to create a blueprint for the proposed film studioGaurav Laghate | ET Bureau | April 14, 2017, 09:12 IST

(Thinkstock Image)Amazon is smitten by India’s biggest obsession: Bollywood. Unlike Disney India and Balaji Telefilms that have shelved plans for Hindi film studios, the e-commerce major is considering the option of joining the world’s most prolific film industry, drawn by the success of its video service. The plans aren’t set in stone, but industry sources say Amazon has hired consultants with expertise in content, film distribution, and exhibition to create a blueprint for the proposed film studio.

Roy Price, who heads the company’s content business and leads Amazon Studios, is in Mumbai this week, and has had meetings with multiple producers and content makers.

“Amazon is bullish about content in India. They are spending huge money for originals as well as films. The next natural progression is getting into film studio business, like the US. However, it is too early, they have just started working on it and it may take them over 6-9 months for actually announcing any plans,” said a source with direct knowledge of the development.

Amazon’s love for Bollywood is based on hard data: According to Nitesh Kriplani, country head – India at Amazon Prime Video, out of top 12 content pieces that viewers watch on the service in India, there are at least four Hindi movies, two regional titles, two US movies, two Amazon Originals, and one or two kids shows. Amazon, which sources say, has a $300 million video-content budget, has relied on local movie content to eclipse rival Netflix within four months of the India launch of Prime Video service.

For his part, Price did not rule out the possibility of opening film studios in India. “Right now, we are really focused on getting the original TV shows and licensing a lot of movies. We are always kicking around ideas. We are very responsive to the audience, and the audience loves movies. So TBD — to be decided, discussed, and debated,” Price told ET.

He added that Indians, like the Japanese, watch a lot of local content. “India has a very rich cinematic tradition and history, and so that’s where we really need to be — both licensing from other people and developing originals.”

Industry experts view the plan as part of Amazon’s strategy toward taking the competition a notch higher. In the US, it has started producing films with a theatrical window, and is looking do replicate the move in the UK, Japan and India — three of its largest markets outside the home base.

“If true, it’s great news, a welcome addition to the corporatisation of Bollywood,” said Tanuj Garg, Managing Partner - Ellipsis Entertainment. “Its entry makes logical sense too, as the scope for content integration with other businesses of Amazon, whether from a marketing or exploitation perspective, will be hugely beneficial.”

However, the state of the current market might prompt Amazon to move with caution. “With the kind of investments made by Amazon Prime Video in developing originals and licensing films, creating a production entity is the next logical step. However, given the nature of the flux in the film business in India at present, it will be imperative for it to select the right business model and right partners very carefully,” said a senior producer.